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REUTERS, BLOOMBERG

Worldcrunch

NICOSIA – Global markets tumbled Monday as new doubts spread about the solvency of the eurozone with the Cypriot government preparing to impose a new levy on bank deposits in order to qualify for bailout funds.

Finance ministers in the eurozone Sunday had demanded that Cypriots pay up to 10% of their bank deposits in exchange for 10 billion euro bailout package. Panicked residents of the Mediterranean island nation began withdrawing their money from their accounts to avoid being hit by the levy, which would take effect this week.

The latest events have shaken investors, who fear such a bank run could be repeated in other troubled European economies. Shares fell in both Asia and Europe as the trading week opened, while the euro plunged nearly two percent at its lowest moment Monday.

“Traders and investors are aghast as these measures,” said chief market strategist at CMC Markers in Sydney, Michael McCarthy to Bloomberg Television.

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Photo by - Leonid Mamchenkov

The Cypriot government is reportedly working on a levy reduction from 6.7% to 3% for deposits under 100,000 euros. Anything above this amount would be taxed between 9.9% to 12.5%, according to a Reuters source close to the consultations.

With many Russian-controlled bank accounts on the island, Russian President Vladimir Putin called the levy “unjust, unprofessional and dangerous,” reports Reuters.

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Ideas

How Turkey Can Bring Its Brain Drain Back Home

Turkey heads to the polls next year as it faces its worst economic crisis in decades. Disillusioned by corruption, many young people have already left. However, Turkey's disaffected young expats are still very attached to their country, and could offer the best hope for a new future for the country.

Photo of people on a passenger ferry on the Bosphorus, with Istanbul in the background

Leaving Istanbul?

Bekir Ağırdır*

-Analysis-

ISTANBUL — Turkey goes to the polls next June in crucial national elections. President Recep Tayyip Erdogan is up against several serious challenges, as a dissatisfied electorate faces the worst economic crisis of his two-decade rule. The opposition is polling well, but the traditional media landscape is in the hands of the government and its supporters.

But against this backdrop, many, especially the young, are disillusioned with the country and its entire political system.

Young or old, people from every demographic, cultural group and class who worry about the future of Turkey are looking for something new. Relationships and dialogues between people from different political traditions and backgrounds are increasing. We all constantly feel the country's declining quality of life and worry about the prevalence of crime and lawlessness.

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